Economically and Environmentally Sustainable Enhanced Oil Recovery. M. R. Islam
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As stated earlier, hydraulic fracturing has been used for decades to stimulate increased production from existing oil or gas wells. This technique, along with other well stimulation techniques, has been regulated to varying degrees through state oil and gas codes. The detail and scope of applicable regulations vary across the states, and some states have regulated “well stimulation” broadly without addressing hydraulic “fracturing” explicitly. State regulators have noted that hydraulic fracturing operations are regulated through provisions that address various production activities, including requirements regarding well construction (e.g., casing and cementing), well stimulation (e.g., hydraulic fracturing), and well operation (e.g., pressure testing and blowout prevention). Nonetheless, state groundwater protection officials also have reported that development of shale gas and tight oil using high-volume hydraulic fracturing, in combination with directional drilling, has posed new challenges for the management and protection of water resources. Consequently, many of the major producing states have revised or are in the process of revising their oil and gas laws and regulations to respond to these advances in oil and natural gas production technologies and related changes in the industry.
The debate over the groundwater contamination risks associated with hydraulic fracturing operations has been fueled, in part, by the lack of scientific studies to assess more thoroughly the current practices and related complaints and uncertainties. To help address this issue, Congress has directed the EPA to conduct a study on the relationship between hydraulic fracturing and drinking water. The “hydraulic fracturing” debate also has been complicated by terminology. Many who express concern over the potential environmental impacts associated with hydraulic fracturing do not differentiate the well stimulation process of “fracking” from the full range of activities associated with unconventional oil and gas exploration and production.
In summary, the petroleum era has been about profiting from processing, rather than getting value from the energy resource. Even for the chemicals used to augment production have become entirely artificial, leading to sustainability concerns both in terms of environment and economics.
2.4 The Information Age
Ever since the oil crisis of 1973 that was triggered by the boycott of oil import by some Middle Eastern countries, the American general public has been continuously primed to face energy crisis that is perceived to be forthcoming. Since the demand for oil is unlikely to decline it inevitably means that the price will increase, probably quite dramatically. This crisis attributed to peak oil theory is proposed to be remedied with 1) austerity measures in order to decrease dependence on energy, possibly decreasing per capita energy consumption, and 2) alternatives to fossil fuel (Speight and Islam, 2016). None of these measures seem appealing because any austerity measure can induce imbalance in the economic system that is dependent on the spending habit of the population and any alternative energy source may prove to be more expensive than fossil fuel. These concerns create panic, which is beneficial to certain energy industries, including bio-fuel, nuclear, wind, and others. Add to this problem is the recent hysteria created based on the premise that oil consumption is the reason behind global warming. This in itself has created opportunities with many sectors engaged in carbon sequestration.
In general, there has been a perception that solar, wind and other forms of ‘renewable’ energy are more sustainable or less harmful to the environment than its petroleum counterpart. It is stated that renewable energy is energy that is collected from renewable resources, which are naturally replenished on a human timescale, such as sunlight, wind, rain, tides, waves, and geothermal heat. Chhetri and Islam (2008) have demonstrated that the claim of harmlessness and absolute sustainability is not only exaggerated, it is not supported by science. However, irrespective of scientific research, this positive perception translated into global public support. One such survey was performed by Ipsos Global in 2011 that found very favorable rating for non-fossil fuel energy sources (Figure 2.8). Perception does have economic implications attached to it. The Ipsos (2011) study found 75% agreeing to the slogan “scientific research makes a direct contribution to economic growth in the UK”. However, in the workshops, although participants agreed with this, they did not always understand the mechanisms through which science affects economic growth. There is strong support for the public funding of scientific research, with three-quarters (76%) agreeing that “even if it brings no immediate benefits, research which advances knowledge should be funded by the Government”. Very few (15%) think that “Government funding for science should be cut because the money can be better spent elsewhere”. This is in spite of public support for cutting Government spending overall. It is not any different in the USA, for which perception translates directly into pressure on the legislative body, resulting in improved subsidy for certain activities.
Figure 2.8 Public perception toward energy sources (Ipsos, 2011).
The Energy Outlook considers a range of alternative scenarios to explore different aspects of the energy transition (Figure 2.8). The scenarios have some common features, such as a significant increase in energy demand and a shift towards a lower carbon fuel mix, but differ in terms of particular policy or technology assumptions. In Figure 2.9, Evolving Transition (ET) scenario is a direct function of public perception that dictates government policies, technology and social preferences. Some scenarios focus on particular policies that affect specific fuels or technologies, e.g. a ban on sales of internal combustion engine (ICE) cars, a greater policy push to renewable energy, or weaker policy support for a switch from coal to gas considered, e.g. faster and even faster transitions.
Even though petroleum continues to be the world’s most diverse, efficient, and abundant energy source, due to “grim climate concerns”, global initiatives are pointing toward a “go green” mantra. When it comes to defining ‘green’, numerous schemes are being presented as ‘green’ even though all it means is the source of energy is not carbon. In fact the ‘left’, often emboldened with ‘scientific evidence’, blames Carbon for everything, forgetting that carbon is the most essential component of plants. The ‘right’, on the other hand, deny climate change altogether, stating that it is all part of the natural cycle and there is nothing unusual about the current surge in CO2 in the atmosphere. Both sides ignore the real science behind the process. The left refuses to recognize the fact that artificial chemicals added during the refining process make the petroleum inherently toxic and in absence of these chemicals petroleum itself is 100% sustainable. The right, on the hand, does not recognize the science of artificial chemicals that are inherently toxic and does not see the need for any change in the modus operandi. More importantly, both sides see no need for a change in fundamental economic outlook.
Figure 2.9 Energy outlook for 2040 as compared to 2016 under various scenarios (Renewables includes wind, solar, geothermal, biomass, and biofuels: from BP Report, 2018).
Energy management has been a political issue